Each year brings a new challenge for accountants and managers alike: taxes. The yearly tax schedule is something that most dread but all should pay close attention to in order to operate a business smoothly. The tax schedule is out and well underway, so here are some important deadlines to take note of to help you spend more time on business operations and less on taxes:
Employment and contracting forms like W-2 and W-3 should be done by January 31st. Form 1099s, regarding real estate and general property transactions, as well Form 1099-DIV, dividend reporting, are both due on February 28th. It is important to keep in mind that most tax scheduling revolves around the tax law for the state of Delaware, as this is where many companies choose to incorporate. The first of these is Delaware’s deadline for franchise annual reports and taxes, falling on March 1st, immediately after these February deadlines.
Tax Day and the due date for Quarter 1 estimated tax payments fall on the 18th of April, but companies that are 10% or more owned by foreign ownership should keep an eye on the May 31st deadline for BE-12, the foreign investment form. Immediately following are Delaware’s limited liability corporation franchise annual fee due date on June 1st, with Quarter 2 estimated tax payments due June 15th.
Quarter 3 estimated tax payments are due September 15th and extended returns for both c-corporations and limited liability corporations due October 16th. The final significant deadline for the year is the December 16th deadline for Quarter 4 estimated tax payments.
While keeping track of tax payments can be overwhelming and tedious, it is of the utmost importance to keep up with in order to maintain ethical business practices and avoid costly penalties. Hopefully this graphic and overview of the tax deadlines calendar will make your startup’s tax experience a little bit easier.
